The bad debt reserve ratio of listed companies refers to the ratio of how much of your accounts receivable cannot be recovered, and the current income is the current profit. If you have more bad debt reserves, your income will definitely be less now.
The provision for bad debts should be deducted from the income as an administrative expense.
The accrual ratio needs to be determined according to the actual situation of the enterprise.
Different companies in the same industry have different customer management capabilities and business models, and the corresponding payment ability and speed are also very different, as are accounts receivable.
After all, the proportion of bad debts affects profits and has a very important impact on the stock price of listed companies.